What the new Adult Skills Fund (ASF) means for learners and training providers 

In recent months, some big changes have been made within adult education. As of 1 August 2024, the Adult Skills Fund (ASF) officially replaced the Adult Education Budget (AEB), marking one of the most significant updates to adult funding in recent memory.  

The Adult Skills Fund has brought fresh opportunities while introducing new rules on allocating funding. The goal is to help more adults – especially those with lower qualifications or in low-paying jobs – to gain valuable, up-to-date skills that lead to sustainable and meaningful employment. 

So, what’s changing? Let’s break it down: 

1. Non-regulated learning: The days of formula funding for non-regulated learning are over. While exceptions exist for certain areas like work placements and heavy goods vehicle (HGV) medicals and certificates, most non-regulated learning will now be funded through the "Tailored Learning" element of Adult Skills Fund (formerly "Community Learning" under AEB). 

2. Funding models: For grant-funded providers, 20% of their funding will now be earned upon completion. Procured contracts, however, will continue to hold back 20%, which will only be released upon the successful achievement of learning aims. 

3. No more learner income caps: From 2024-25, there’s no longer a limit on how much a learner can earn for funding. 

4. New funding formula: Qualification funding rates have had a makeover, with the majority (75%) seeing an increase. However, 20% of qualifications will see a reduction in funding, and 5% will remain unchanged. 

5. Hourly ASF rates: The Adult Skills Fund introduces a new tiered funding formula based on guided learning hours (GLH) and weighted by sector-specific skill shortages. Rates will be classified as base, low, medium, high, or specialist, depending on industry needs. 

What does this mean for training providers? 

As a result of these changes, the focus is shifting to ensuring high-quality delivery – especially when it comes to the guided learning hours (GLH) attached to each qualification.  

Training providers must take into account the increased scrutiny on the delivery of direct, in-person learning experiences, as opposed to remote or distance learning, as a result of the emphasis on the GLH-based funding calculation. This shift is all about ensuring value for money and transparency, as auditors, Mayoral Combined Authorities (MCAs), and Ofsted will be keeping a close eye on this during their inspections. 

Additionally, providers will need to demonstrate employer involvement in the design of their learning programmes — proving that the skills taught are relevant and in demand. 

The opportunities and risks of the Adult Skills Fund 

While the introduction of the Adult Skills Fund offers plenty of positives, such as increased funding rates for most qualifications, there are also some risks to be aware of. For example, although funding for many qualifications is increasing, the overall ASF budget is not. This means fewer learners will be able to access ASF qualifications, potentially slowing down efforts to address national skills shortages. 

Training providers will need to rethink their delivery models and methodologies to ensure they’re aligned with the new funding rules. The ability to provide evidence of guided learning will be key, as it directly ties into how funding is allocated based on qualification GLH values. 

The challenge of devolved vs non-devolved funding 

The Adult Skills Fund primarily focuses on supporting learners in non-devolved areas, but with the increasing devolution of adult skills funding, things can get a little complicated.  

Most devolved regions are expected to follow ASF’s principles and formulas, but there will be differences in funding rates from region to region. This variability can be confusing for employers and providers working across multiple regions, as they’ll need to navigate different funding rules depending on the learner’s postcode. 

Ultimately, it will be up to training providers to make sure that their adult learners meet the correct eligibility criteria – whether at a national or regional level. 

What’s next? 

The Adult Skills Fund is ushering in a new era of adult education funding, designed to address skill gaps and support adults in low-paying jobs or with fewer qualifications. While it offers many opportunities, particularly with higher funding rates and a focus on guided learning, providers must stay agile and ensure their delivery models meet the new standards. 

By preparing now, providers can ensure they’re well-positioned to help learners thrive in this evolving landscape of adult education. 

You can visit our Adult Skills Fund homepage to find out more information, access our ASF webinar series, and explore our funded adult qualifications. 

Watch: Bridgwater and Taunton College case study

Bridgwater and Taunton College showcase learner stories, the dedication of their educators, and the innovative programmes that are driving positive change through the Adult Skills Fund (ASF) – previously Adult Education Budget (AEB).